Trusted Saskatoon Computer and Website Systems Expert!
Or, how the ageing PC affects your bottom line.
All business owners know that for a business to survive it must have more money coming in than going out. What great business owner know is where to look and find the hidden costs of running their business to achieve greater profit.
One of the easiest places to look is the IT infrastructure. Many businesses see computers as an expense and not an asset, and this is never more apparent when the time arrives to buy a new PC to replace the ageing ones.
So… here are a few facts and figures to remove the lump in the throat which exists when spending on IT.
It is estimated that around 36% of small to medium business have complete infrastructures which are older than 4 years. This figure comes from a recent study conducted by Techaisle across 6 countries. The study exposes the true costs of maintaining older PCs, the frequency of repairs, hours lost along with an assessment of the most frequent types of applications and systems performance issues encountered by PCs that unbeknownst to many small businesses are chipping away at their cash flows and productive work hours.
The basic repair numbers. For a business of 50-99 users the cost of repairs to a PC older than 4 years is on average $521, this is 1.4 times the amount spent on a PC which is less than 4 years old. A hefty price as this can equal the price of a new PC which will be more productive than the older, slower PC being repaired.
Let me say that again, the repair cost therefore either equals or even exceeds the purchase price of some new PCs.
Upgrading also has hidden costs. With the average office worker now having up to eight applications open at any time the older PCs are struggling to keep pace. It is not surprising therefore to see that 25% of older PCs are upgraded each year, which is 1.7 times the amount of PCs that are less than 4 years old.
The highest cost to upgrade an older PC is among the 1-49 employee businesses. Upgrading an older PC here is 1.6 times that of upgrading a PC less than 4 years old. Combining the average upgrade costs with the average repair cost to a small business equals $561 per older PC. Again, the price of a replacement PC.
The study showed that 60% of business replace a PC when the repair costs are equal or greater than the price of a new one, looking at the figures above you can see that this point is hit at the 4 year mark. The study also revealed that on average a PC which is older than 4 years results in 42 hours of lost productivity per year. This results from actual down time during repairs or the ever increasing and constant reboots to get the PC ‘running faster’.
I don’t know what your office staff’s hourly rate is, but lets say it is $20ph, 42x$20= $840 per year. Is it time to replace the older PC?